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A RESEARCH PROJECT REPORT ON BRAND POSITIONING OF PEPSI CO. IN BHUBANESWAR SUBMITTED BY SUBRAT KUMAR BEHERA REG. NO: - 08/OR/KBS/PGDM/FT/023 (2008-2010) Under The Guidance Of Mr. ANUJA ROY (MARKETING)KOUSTUV BUSINESS SCHOOL, BHUBANESWAR SUBMITED TO TRIPTY DRINKS PRIVATE LIMITED. Jagatpur, Cuttack.
DECLARATIONI, SUBRAT KUMAR BEHERA hereby declare that the project report written and submitted to KOUSTUV BUSINESS SCHOOL, BHUBANESWAR by me is my own and its equal copy has not been reproduced to any other institution/university or published anywhere else. I understand that such reproducing is liable for punishment in any way the university deem fit.Place: BHUBANESWAR SUBRAT KUMAR BEHERADate:-
ACKNOWLEDGEMENTI would like to express my sincere gratitude to the following people without whose help, supportand encouragement; the successful completion of project would not have been possible. I want tothank Mr. Anuja Roy my faculty guide, for helping me and clarifying my doubts as and whenthey arose. I am highly indebted to all the Dealers and Consumers who were a part of my survey,helped in my endeavor and spurred me to achieve something worthwhile and enduring. Thesuccess of this project is because of the cooperation of all. I take no credit for this achievementbut take the responsibility of any mistakes and inaccuracies. I thank GOD, for being so kind tome and blessing me with you all. Subrat Kumar Behera (PGDM 2008-2010) KOUSTUV BUSINESS SCHOOL (BHUBANESWAR)
TABLE OF CONTENTSCHAPTER –I • Preface • Key area • Executive summary • Significance and need of the Study • Objective • MethodologyCHAPTER--II • Industry profile • Pepsico in India subcontinent • Product profileCHAPTER—III • Market activity • Distribution Channel • Data interpretationCHAPTER—IV • SWOT Analysis • Findings • Recommends & suggestions • ConclusionCHAPTER--V • Bibliography • Questionnaire
CHAPTER –I• PREFACE• KEY AREA• EXECUTIVE SUMMARY• SIGNIFICANCE AND NEED OF THE STUDY• OBJECTIVE• METHODOLOGY
PREFACE Marketing is matching customer needs with the offering of the Company or in simplewords it is “meeting needs profitably”. There are different factors which influence the sale ofgoods. A number of variables come into play when we consider the sale of C.S.D.(CarbonatedSoft Drink ) products. The basic reason for this is seasonal affect on purchasing the product,slowly resulting in the consumer loyalty and the relationship between dealers, distributors andthe company.Some other important variables that affect the C.S.D. products are:- • Visibility of the product • Feasibility of the product • Availability of the product • Perceived quality of the product • Distribution channels used Distribution is the channel that bridges the gap between an organization and the enduser/customer. This bridge has to have a strong foundation and has to be repaired from time totime. Those companies that pay too little attention to their distribution channels suffer damagingresults. KEY AREA
The key area of my research report was “The study of different selling outlets ofPEPSI. “ The company had divided his retail outlets on the basis of area wise and character wise.Each of the division is having mainly three types of outlets.1) AREA WISE: - The area of my Research report was “PEPSI CO.” and according to thecompany the whole training area was divided into three parts…. INNER CIRCLE: - These are the main selling point of a company or heart of a city. In innercircle we mainly consider those selling point or retailers shops which come under the mainmarket area.OUTER CIRCLE: - These areas are adjacent to the main market area, which is a mixture ofresidential areas and market areas. In these areas we mainly talk about those retailers’ shops,which are placed in the residential areas and quite away from the main market. 2) OUTSKIRTS: - These areas are quite away from the main city and the main market, or theinterior areas of the town. CHAR ACTER WISE: Again there is a division of outlets on the basis of characters (type ofwork done by the retailers) and there are again three types of outlets. CONVENIENCE OUTLET: - These types of outlets include general stores, beetle shops,stationary shop, medical shop and such type of other shops. GROCERY OUTLETS: - These types of outlets include grocery stores which indulge inselling of foods and related things used in the home.EATERY: - It includes restaurants, fast food joints etc
EXECUTIVE SUMMARY In the project the nature of research is exploratory research whereby efforts have beenmade by executing the research in Pepsi co. regions. A systematic as well as well-designedapproach has been adopted while conducting research about market characteristics. It is followed by the research methodology which is adopted has been defined with thehelp of collected data, a detailed interpretation about the company has been given there, theproduct profile is defined covering the types and different flavors of the PEPSI CSDs. The nextstep was defining the sampling design where the sample size of 70 was taken for the dealers andthe target area was Pepsi co. To facilitate the research work on questionnaire method wasadopted for the collection of the data as a primary research whereas the secondary data wascollected from different books, company library and the other trade / business websites. Questionnaire contains both open ended questions and close ended questions, on the basisof the feedback the analysis was done with the help of the clear graphical representation by usingpie charts, and other graphs. The next step was the most important step for analysis at the actualfindings of the project and recommend to the company what can be incorporated for furtherimprovement.
SIGNIFICANCE AND THE NEED OF THE STUDYMarket research is concerned with the authentic and objective collection, analysis and evaluationof information about specific and practical aspects of marketing problems in order to help themanagement in making effective decisions. Market research is not an end in itself but it is ameans to an end.My study on this project will help the company to know its strengths and weaknesses withrespect to the CSD market and to make strategic future decision to improve its market awarenessand penetration and thus finally enhance its sales. • Primarily this study will enable the company to evaluate its position among the competitors in respect to all the important factors related. • Secondarily this study will enable the company to develop a fruitful correspondence with the leads generated during the tenure of the study conducted.
OBJECTIVE• To study the dealers and retailers sales trend, of CSD industry and their products. To make comparative analysis between Pepsi and Coke..• To determine the visibility of the Pepsi on the dealer outlets.• To determine the preference levels of Pepsi in comparison to the Coke.• To find out the satisfaction level of Pepsi in company.• To find out the sales level of Pepsi in comparison to the Coke.• To find out the dealers’ perception about the Pepsi product.• To find out the various factors influencing purchase of the Pepsi or Coke.• To find out the expectations of the dealers from the company.
METHODOLOGY Marketing research is the backbone of marketing. The main objective of my study was toget information from the dealer regarding the sales of the CSD and non CSD products of Pepsi,and to look at the other feasible channel for the sales of those products.Meaning of Research: Research in common parlance refers to a search of knowledge. One canalso define research as a scientific research for pertinent knowledge or information on a specifictopic. This is a systematic and objective identification, collection of data, analysis, disseminationand use of information for the purpose of assisting management in decision making relatedidentification and solution of problem in the market.Method of studyI have divided my all study into three phases which are1. Rout visit2. Outlet survey3. Product surveyI have selected 70 outlet of simple and make comparative study between Pepsi and Coca Cola.There are several method for data collection, I have adopted one of them i.e. Sample Size.Through questionnaire I have collected data for study. I have collect the data from retail outletand take personal interview to distributor.Research instrument • Questionnaire • Personal interview • Sampling designSampling design is a conductive approach, which gives the research work a factual as well asconclusive framework. It contains sample size, which is basically a true representation of thetarget populationNumber of total outlets:
Total number of outlets – 120I have taken the sample--70Outlet type Outlet numbersCONVINIENCE 42GROCERY 10EATERY 18Commencement of Fieldwork:-The fieldwork included the process of getting the questionnaires filled up and also getting all therelevant information regarding the visibility of PEPSI for future business decisions.My fieldwork included extensive coverage of the following areas:- • MARKET BUILDING • KHARBEL NAGAR • Unit-111My data collection process included in-depth interviews with the dealers and consumers gettingas much as relevant information as could be.
CHAPTER—II• Industry profile• PepsiCo in India• Product profile
INDUSTRY PROFILEThere is a very huge market size of the soft drink industries and as per the market size thenumbers of competitors are also very huge. In the present scenario there are many soft drinkindustries in India. Many of them work at the state level and they distribute their product in thoseareas only. These types of players are known as local players. Apart from these industries thereare few more industries which works on the national level or global level and these industries areknown as a national companies and multinational companies.There are following national or multinational companies:- 1. Coca-Cola India Ltd 2. Dabur Foods Ltd 3. Parle Bisleri Pvt Ltd 4. PepsiCo India Holdings Pvt Ltd Pepsi Cola Company was launched in 1902 the back room of pharmacy and applied to U.Spatent office for trademark. The business began to grow. On 16 th June 1903 “Pepsi Cola” wasofficially registered with U.S. patent office. That year Caleb Brand Ham sold 7.968 gallons ofsyrups, later on he began awarding franchise to bottle Pepsi to independent investors, whosenumber grew from just two in 1905 in the cities of Charlotte and Durham North Carolina, to 15following year and 40 by 1907.Today PepsiCo is a well-established New York (U.S.A.) based American ($30.40 million)multinational company. Presently Pepsi Cola is selling on an average of ninety millions bottlesper month. Pepsi made its first international move to Russia in 1959. With in thirty years Pepsiemerged as the biggest competitors of Coca-Cola with its presence in 155 countries and workingunder its CEO Steven S. Reinmund.The philosophy of the Pepsi company is always“If you think like No. 2, you will always No. 2”The phenomenal sales growth of carbonated soft drinks Pepsi (about 30 to 35 per cent) andCoca-Cola (40 per cent and above) in the months of April and May 2007 has proved that there is
a right price for everything. The remaining percentage of the market share is distributed amongthe other national and local companies of soft drink industry.In fact, since PepsiCo and Coca-Cola, the two US-based companies, set up operations in India,never have they achieved the kind of sales growth with their carbonated soft drink (CSD) brandsas they have in the past two months.The soft drink industry in India dates to the 1940’s when Parle introduced the first branded softdrink called gold spot. Cola giant coca-cola was the first foreign soft drink company to setup itsshop in India in 1965. Coca-cola made a very good beginning and dominated the market rightfrom the word go. It faced no competition at that time. The marketing people did not even needto publicize coca-cola. Soft Drink: The market size for FY2001 was around 7000 mn bottles. The marketsegmentation is based on the flavor volume. The cola products have nearly 51 to 52 percent softdrink market. The non cola products have nearly 46% market of soft drink it is segmented intoLemon, Orange & Mango flavor.Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption.Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage marketcan be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonatedand non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinkscome under non carbonated category of the soft drink.FINACIAL ANALYSISMARKET SHARE OF PEPSIThe marker share of Pepsi IndiaCo Ltd. Is 49% according to financial year 2009. India has adeveloped capital market so all the Beverage company try to capture the market.Total common share outstanding in September 2007 is 1,610 US Million Doller.MARKET SHARE OF COKECoca Cola is the leader of the Beverage industry and market share of Coca Cola in Indian contestis about 51%. Is was leader and trying to be leader in future
PEPSICO IN INDIANGold Spot is considered as the first branded soft drink to be introduced by Parle in the earlyforties. Coca-Cola was the first foreign soft drink to be introduced in Indian markets. The Coca-Cola company entered India in early fifties when four bottling plant were set up at Bombay,Kolkata, Delhi and Kanpur. Coca-Cola enjoyed a good beginning and dominant market. Parleexports private limited, the major domestic player, later in 1970 introduced Limca a lemon softdrink and Cola Peppino. ..In July 1977, Coca-Cola left India following a public before over share holdings structure andimports permits. As per FERA the company was to close their operation. Major shareholderParle extended its product line and introduced their Cola ‘Thumps up’. Pure Drinks introducedtheir new products ‘Double seven’, ‘Thrill’, ‘Rush’ and ‘Sprint’.After Coca-Cola, PepsiCo began to lay plans to enter this huge market and ninety years after itsintroduction of what was to become one of the best favored soft drink globally in 1988, Pepsientered of India flanked with heavy resources and on riding the winds of change of newlyopened economy. This snacked food and beverage giant managed to stabilize itself in thecountry, but only after overcoming obstacles from a bureaucratic government.PepsiCo entered in Indian market in 1990, and then Pepsi started its bottling plant and corporatecolour blue as the advertisement. When Pepsi entered in Indian market Parle was holding 70%market share in total soft drinks so Pepsi concentrated on availability of its brands andcontinuous attachment by its advertisement. In the year 1991, production of ‘Mirinda’ and ‘7’up’ started and the production of ‘Slice’,‘Teem’ and Coca-Cola came back and launched its product in Agra with Parle Exports Privateand gradually took over the same company.Pepsi entered into the cloudy Lemon category by launching its ‘Mirinda Lemon’ in1988.
In 1993 Pepsi had thirteen bottling plant units. In 1996 the number went up to twentyseven .More plants are being set up and existing one will be expanded with a mission to changetaste of Indians who ,when came to refreshing drinks would go back to traditional ‘Nimbu Pani’,’Jaljeera’. Pepsi was all set to give Indian consumer a taste of internationally famous soft drinksbrand.PepsiCo setup operations in India for beverages and snacks food business under ManagingDirector ‘Mr. Ramesh Vangal’ who was CEO till April, 1992 .At that time number of employeesworking in PepsiCo India were only five. In 1994 number of employees increased up to 200 andin 1997 PepsiCo India force has gone up to 2400.Recently in May, 2001 production of ‘Aquafina’ was started by Pepsi. In the same year, anotherflavor of Mirinda ‘Apple’ was also launched.Pepsi is one of the major sponsors of cricket tournaments in India as well as other sports likefootball and hockey. In Mohali, Punjab, it has set up a Cricket academy to develop youngbudding cricketers.Apart from the business Pepsi concentrated its mind in the social problem of India. (E.g.unemployment, poverty etc.). Most of the bottling plants of Pepsi are located in the backwardareas thereby giving huge employment opportunities in these areas. Pepsi is a responsiblecompany undertaking many social projects in and around the bottling plants. These includesupports to the education centers, sponsoring inoculation camps, providing free health checkups,sanitation drives etc. PRODUCT PROFILE
CARBONATED SOFT DRINKS:- The Joy of Pepsi.COLA PEPSIContains: Carbonated water, high fructose corn syrup, caramel color, phosphoric acid, caffeine,citric acid and natural flavorsDIET PEPSI 0 carbs. 0 calorie. It’s the diet coll.Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate(preserves freshness), caffeine, citric acid and natural flavorsORANGE:MIRINDA ORANGE Savor Your Mirinda.Contains: Carbonated water, high fructose corn syrup, citric acid, purity gum, potassiumbenzoate and potassium sorbate (preserves freshness), ester gum, natural flavor, yellow 6,ascorbic acid and calcium disodium EDTA (to protect flavor), sodium citrateMOUNTAIN DEW Do The DewThe fastest-growing soft drink of the decade, Mountain Dew currently ranks as the nationsleading soft drink in retail outlets. Doing the "Dew" is like no other soft drink experiencebecause of its daring, high-energy, high-intensity, active, extreme citrus taste.
Contains: Carbonated water, high fructose corn syrup, concentrated orange juice and othernatural flavors, citric acid, sodium benzoate (preserves freshness), caffeine, sodium citrate, gumarabic, yellow 5, erythorbic acid (preserves freshness), calcium disodium EDTA (to protectflavor) and brominated vegetable oilCLEAR LEMON Aandaj sabse nirala7upContains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate(preserves freshness), caffeine, citric acid and natural flavorsFRUIT JUICE:-SLICEContains: Carbonated Water, High Fructose Corn Syrup, Mango Juice From Concentrate, CitricAcid, Potassium Benzoate (Preserves Freshness), Modified Food Starch, Natural & ArtificialFlavors, Potassium Sorbate (Preserves Freshness), Ascorbic Acid (Vitamin C),Yellow 6,Glycerol Ester of Wood Rosin, Calcium Disodium EDTA (To Protect Flavor), Sodium Citrate.PACKAGED DRINKING WATER Pure Water Perfect TestAQUAFINAEnjoy the crisp, refreshing taste of Aquafina – 100% pure, non-carbonated, purified drinkingwater. The consistent purity and great taste of Aquafina are guaranteed by means of a state-of-the-art purification process that includes reverse osmosis and carbon filtration. Since its debut in1995, Aquafina has won over consumers with its great taste and purity.Aquafina is the official bottled water of Major League Soccer and the PGA of America.Aquafina is distributed nationwide and can be enjoyed in 500 ml. 1-liter and 1.5-liter bottles.Aquafina. Purity Guaranteed.
Contains: Purified water PRODUCTION PROCESSWATER TREATMENT PLANT:-Water in the Company BL is coming from the Sitarampur dam. It is stored in a reservoir. Beforeensuring production, this raw water is being treated by coagulation process. Main chemicals usedare ferrous sulphate (FeSO4), calcium hydroxide (CaOH) and chlorine (Cl). All theimpurities get settled at the base and remove the turbidity and than used in further processing.BOTTLED WASHING PLANT:-Used bottles returning from the market are stealthy. It is completely an auto process which takesplace within a machine called washer machine. The machine has three compartments. Bottles aretreated with 4% caustic soda in the first compartment at a temperature of 100-150 F again 2%castic soda at 120 F and lastly with soft water. Bottles are then sent through the inspectioncenter, where these are watched against strong lightSYRUP ROOM:-Syrup room is situated in the first floor. Here syrup is prepared from filtered water, sugar and theconcentrate. The room is well equipped with several tanks and filter press. First the syrup isconcentrated and than it heated at 85C.The solution is saturated and passed through a para flowcooler, syrup is cooled down to 20-25 C.. Syrup comes to the traumatic machine. Here syrup ismixed with carbonated water under pressure in definite proportion. Carbonated syrup by thistime fills the filter machine. From this machine syrup is poured into the bottles in calculatedamount. The exact rate of filling is 620 bottles per minute. Meanwhile crow machine helps inclosing the bottle mouth with caps which makes them completely air tight.
CHAPTER—III • Market activity • Distribution Channel • Observation and Analysis MARKETING ACTIVITIESINTRODUCTION
Marketing needs a framework that begins and ends with the customer. There is anintermediate step between the deployment of marketing tools and the achievement of marketingobjectives. A marketing network consists of the company and its supporting stakeholders(customers, suppliers, distributors, retailers, ad agencies, and others). A set of marketing toolsthe firm uses to pursue its marketing objectives are called marketing mix. These tools can beclassified into four groups which are called the four Ps of marketing. PROD UCT PRO MOTI PRIC OOO E OOO N PLACETARGET CONSUMERSHowever some academicians feel that the four Ps of marketing have become redundant andneeds to be replaced by the four As or the four Cs of marketSoft drink is a FMCG product which has a wide and scattered market.Thus it is divided into sub-parts to effectively meet the customer needs.The entire market in this case is divided into three parts viz.:-ROUTE MARKET
Outlets coming under this market cater to the needs of those customers who are engaged inshopping, eating out in restraints, going to and from work, in amusement centers etc. In simplerwords this market is what we call the bazaar.HOME MARKETOutlets coming under this market cater to the customers who buy soft drinks predominantly forhome consumption either by glass bottles or pet bottles. The shops targeted under this categoryare those which are located inside residential complex.AT WORK MARKETOutlets coming under this market cater to the needs of those customers who are working inoffices, factories etc. i.e., the outlets targeted are the canteens mainly.PROMOTIONAL ACTIVITIESSales promotion a key ingredient in marketing campaigns consists of a collection of incentivetools, mostly short term, designed to stimulate quicker or greater purchase of particular productsor services by customers. Personal Advertising Selling Sales Direct Public Promotion Marketing Relation
Promotional activities play a key role in the entire marketing effort being carried out byCompany. These promotional activities generate more sales as well as create a good image of theproduct in the mind of the customer.The promotional tools used by company for its marketing activities are • Point of sale display • Incentives to retailers • Sales promotion through sponsoring special events • Sales promotion through various schemes • AdvertisingPOINT OF SALE DISPLAY“There are many ways to communicate with consumers at the point of sale. In-store advertisingincludes shopping carts, cart straps, aisles and shelves. The appeal of the point of sale advertisinglies in the fact that in many categories consumers make the bulk of their final decision regardingpurchase in the shop.” Marketing management Kotler, Killer, Koushik and JhaThis is particularly true for those brands which have very low customer loyalty. Soft drink is onesuch product in which most of the time buying decision is made at the spur of the moment basedon the brand which is readily available and catches the eye of the customer. For this reasoncompany invest heavily in this category by supplying the shop owners with stands so that theycan keep the bottles outside on those stands so that customers have an eye contact with them ashe/she is entering the shop. Also Pepsi supplies the shop with visi coolers with a glass front sothat cooled bottles can be seen by the customer when he/she is making a decision on the flavorthat the person is going to buy. Apart from these company takes keen interest in other type ofstrategies like painting the walls of the shops with the Pepsi logo, putting up glow signs and dashboards with the Pepsi logo and the shop name. This increases the visibility of the brand amongthe customer when he/she enters the shop.INCENTIVE TO RETAILERS
Another method of sales promotion being used by companyis by running special incentiveschemes for retailers. This type of promotional strategy is conducted mainly during the peakseason i.e., from March to July.ADVERTISING“Advertising is any paid form of non-personal presentation and promotion of ideas, goodsor services by an identified sponsor.”Marketing management Abraham Kawshik & jha. • Advertising is also known as a process of Telling & Selling. • Drawing the attention of consumers to any product, object, purpose or idea by using non personal media of communication is termed as Advertising. • Through advertising the advertiser intends to spread his ideas about his products/offerings among the customers and prospects. • Advertising can also defined as” the action of attracting public attention to a Product or business," is one of many marketing tools you can use to draw in more customers with greater frequency.What Advertising Can Do For Your Business • Remind customers and prospects about the benefits of your product or service • Establish and maintain your distinct identity or "personality" • Enhance your reputation • Encourage existing customers to buy more of what you sell • Attract new customers and replace lost ones • Slowly build sales to boost your bottom line1. Using Other Promotional AvenuesThe theme of your advertising reflects your special identity or personality, and the particularbenefits of your product or service. For example, cosmetics ads almost always rely on aglamorous theme. Many food products opt for healthy, all-American-family campaigns.
Automobile advertising frequently concentrates on how the car makes you feel about owning ordriving it rather than performance attributes.Five “M” of advertising: MESSAGE MESSAGE What message What message should be sent? should be sent? MISSION MISSION MEASUREMENT MEASUREMENT What are the MONEY MONEY What are the How should the How should the advertising advertising How much can How much can result be result be objectives? objectives? be spent? be spent? evaluated? evaluated? MEDIA MEDIA What media What media should be should be used? used?A very important part of advertising is to decide the medium of advertising and how much tospend on each medium.The different mediums used by Pepsi are: • TV • Hoarding • Newspaper/Magazines • Radio • Product of sales material(painting, glow signs, D. Board)
Some of the brand ambassadors of PepsiCo associated with the different brands is: • Shahrukh Khan – Pepsi • Sachin Tendulkar – Pepsi • Amitabh Bachchan – Pepsi • John Abraham – Diet Pepsi • Zayed Khan – Mirinda • Mallika Sherawat – 7upOBJECTIVES OF THE ADVERTISING STRATEGY:-Informative advertising means telling the market about new product, suggesting new uses for aproduct, informing the market about the price change, explaining how the product works etc.Persuasive advertising means building brand preference, encouraging customers to switch totheir product, changing customer’s perception.Reminding consumer that the product may be needed in the near future, reminding consumerswhere to buy it.Thus advertising is a fascinating and important aspect of marketing. Advertising appeals to allirrespective of age, caste, sex, borders etc. Words which can be associated with advertising arefun, humor, warm, entertaining, persuasive, boring, and irritating. Advertising in simpler wordsis communication and persuasive and leaves a mark in the mind of the consumer. Thus it isnatural to look to theories, concepts and research findings from psychology to understand andmange the whole process. DISTRIBUTION CHANNEL
All the marketing intermediaries (Sole selling agents, whole sellers, distributors, retailers etc.)used by the producer for the purpose of making their products available to users are collectivelyconstituting the distribution channel.Role of Distribution Channel • Provide Distribution Efficiency to manufacturers • Supply products in required Assortments • Provide Salesmanship • Help Merchandising the product • Help implement the Price Mechanism • Physical Distribution & Financing • Change Agent & generate DemandPhysical distribution of goods and products is a process of reaching out to the customer. Afterthe production process is over the main concern for a company is how to make that productavailable at the nearest shop of the target customer. For this the company needs to have aneffective distribution network which is cost effective, reaches to every nook and corner of thetarget market and delivers the goods to the shops on time so that there is no scarcity. Thus acompany needs to have a very clear cut understanding of the geographies of that particular areafor an effective distribution channel. Basically there are two types of market viz. urban marketand rural market. Both the markets are very different from each other in terms of preference,frequency of goods sold, price and quality. With respect to soft drinks it has been seen that thefrequency of sale is faster in the urban market. Thus the distribution network has to be moreprudent in the urban market. The area that was given to me comes under the urban market.Thecompany had divided his retail outlets on the basis of area wise and each of the division is havingmainly three types of outlets.INNER CIRCLE: - These are the main selling point of a company or heart of a city. In innercircle we mainly consider those selling point or retailers shops which come under the mainmarket area.
OUTER CIRCLE: - These areas are adjacent to the main market area, which is a mixture ofresidential areas and market areas. In these areas we mainly talk about those retailers’ shops,which are placed in the residential areas and quite away from the main market.OUTSKIRTS: - These areas are quite away from the main city and the main market, or theinterior areas of the town. INNER CIRCLE OUTER CIRCLE OUTSKIRTSFACTORS AFFECTING THE CHOICE OF DISTRIBUTION CHANNEL:-There are a number of channels from which a company can choose from. The different channelshave already been mentioned in the introduction. The channel chosen should achieve the idealmarket exposure and should be able to meet the target customer’s needs and preferences. Inchoosing the ideal channel, the company always has to struggle between what is ideal and whatis available. What is available need not be the ideal because there are a number of factors that
limits the choice.For this reason auto or matador is the best alternative for distributor but it cancarry fewer loads. An ideal channel should also be the best cost channel and keeping the entireshortcoming in view a company should choose the best cost channel as its ideal channel. But it isalso a little tricky as this can lead to customer dissatisfaction and therefore sometimes arelatively high cost channel can prove more profitable.Various factors which affect the choice of the distribution channel are: • Factors relating to product characteristics Purchase frequency Selling price per unit Standardized product • Market factors and consumer factors Consumer of industrial products Number of purchasers Geographical distribution of consumers Size of the order • Company factor Financial resources Size of the company Product mix Attitude of the company executives Marketing policies • Environmental factors Economical considerations Legal restrictions Social and ethical considerations • Middle man consideration Service provided by the middleman Attitude of the middleman Availability of the middleman
Sales volume potential Cost of channel usage Thus the above factors influence the decision regarding the distribution channel. It is therefore right to say that a company is not always free to enjoy complete freedom in selecting the distribution channel. DISTRIBUTION CHANNEL FACTORY FACTORYHML (FACTORY DEPOT)HML (FACTORY DEPOT) INSTITUTIONAL OPERATION INSTITUTIONAL OPERATIONDIRECTOR OPERATION DIRECTOR OPERATION CSD CSD RAILWAYS RAILWAYS MARINS MARINS DISTRIBUTORS DISTRIBUTORS DEALERS DEALERS 3- LEVEL DISTRIBUTION CHANNEL 2- LEVEL DISTRIBUTION CHANNEL
DATA INTERPRETATIONMarket survey is one of the most widely used marketing research techniques. Its purpose iscollection of specific data concerning to the market that cannot come from the company’sinternal records or from external published source of data. The only way to get accurate dataregarding the target market is by physically moving around in that area along with the Pepsivehicle. There are various types of surveys out of which the one that I used was the censussurvey. The report on marketing activities of company is based on a survey.DEALER SURVEYDealer survey or retailer survey is one of the most accurate methods to know about the marketshare of a company and it is especially true for soft drinks companies. Soft drink market istypically characterized by changes in the stock position everyday.In order to have a good knowledge about the market and the route it was important for me tomove along with the Pepsi vehicle. This helped me to know about: 1. Number of dealers in the market 2. Location of the dealers 3. Type of dealers 4. Market shareLearning in the classrooms and learning practically are two different things. So for the first 15days I moved along with the Pepsi vehicle interacting with the retailers and trying to build up arapport with them. From this I also came to know how to deal with different types of retailersand how to convince them. Feedback from the retailers helped me to find out where the companywas lacking in terms of service provided and also how the competitors fared on the sameparameters.
These feedbacks will help the company to improve its services and as such increase retailersatisfaction which in turn results in better sales and revenue generation. Thus appropriatemarketing strategies can be worked out based upon the findings.While conducting the survey of the dealers a format was provided to me by the company which Ipersonally filled up by interviewing all the retailers in the company area.NUMBER OF OUTLETS:In the Company area there are 120 outlets selling soft drinks out of which around 15 are Pepsiexclusive outlets and 8 are coca-cola exclusive outlets. Rests are selling both the brands. Alsothere are three types of outlets in the area which are:Number of total outlets:Total number of outlets – 120Outlet type Outlet numbersCONVININCE 72GROCERY 18EATERY 30 • Convenience outlet which includes general stores, beetle shops, medical stores and other types of shops • Grocery outlet which includes shops selling grocery • Eatery which includes restaurants, fast food joints etc
MARKET SHARE OF COMPANYMarket Share of Product Market Share of Filled stockSL No Product Est. Mark. Share 1 Pepsi 48.00% 2 Coca Cola 51.00% Market Share of Filled stock Est. Mark. Share 1coca cola 2 PepsiInterpretation
About 70% of the dealers are well aware about the Pepsi product this indicates Good marketshare.Market Share of Product Market Share of Chilled stockSL No Product Est. Mark. Share 1 Pepsi 41.60% 2 Coca Cola 52.40%
Market Share of Chilled stock Est. Mark. Share 1 Coca cola 2 Pepsi InterpretationAbout 70% of the dealers are well aware about the Pepsi product this indicates Good marketshare.Market share of glow signs board: Market Share of Glow Sign
SL No Product Est Mark. Share 1 Pepsi 75% 2 Coca Cola 25%Glow signs are the boards on the top of a shop with neon lights in the back ground with works asa sign board for the shop. It is an effective marketing strategy. Market Share of Glow Sign Est Mark. Share 1 Pepsi 2 Coca ColaInterpretationAccording to the research pepsi has a very good growth rate as it is 48% till April 2009.Market share of VISI cooler:Market Share of VISI CoolerSL No Company Est.Mark. Share1 Pepsi 46.50%2 Coca Cola 54.50%
This is one of the most important supports for the dealers which help them to keep the productchilled and fresh. Market Share of VISI Cooler Est. Mark. Share 1 coca cola 2 Pepsi InterpretationCock has got a large market share (i.e. 54.5%) followed by the pepsi with market share of 46.5%.How much of the business you do, from Pepsi?Business from different OutletSL No Type of Outlet Est. Mark. Share1 Convenience 60%2 Grocery 15%3 Eatery 25%
These three kinds of market shows the total market area which is divided on the basis of thecharacter (type of work done by the retailer). Business from different Outlet Est. Mark. Share 1 Conveience 2 Grocery 3 Eatery InterpretationConvenience shop has a highest percentage of business from Pepsi and followed by Eatery shopand Grocery shop.How frequently do you buy PEPSI?Frequency of buying the PepsiSL No Time Period Percentage1 Daily 20%2 Alternative 70%3 Weekly 10%This is related to the frequency of Pepsi vehicle that a dealer wants, according to the need anddemand of the product in that particular area.
Frequence of buying the Pepsi Percentage 1 Daily 2 Alternative 3 Weekly InterpretationMost of the dealers want a frequency of Pepsi Vehicle on the basis of alternative days.Which is your favorite C.S.D.? Favorite C.S.D. of the ConsumerSL No Product Percentage
1 Pepsi 6% 2 7up 15% 3 M. Dew 11% 4 Slice 12% 5 Mirinda 10% 6 Coca Cola 5% 7 Thumps up 8% 8 Sprite 11% 9 Maaza 7% 10 Fenta 9% 11 Limca 6%With the help of this question, I tried to find out the sale of a particular product at each counter. Favourite C.S.D. of the Consumer Percentage 1 Pepsi 2 7up 3 M. Dew 4 Slice 5 Mirinda 6 Coca Cola 7 Thumps up 8 Sprite 9 Maaza 10 Fenta 11 LimcaInterpretation:-Among the entire CSD product Mirinda,7up,slice occupy a first place in the choice of dealersand followed by Coca-Cola, Sprite etc.How many of each of the following brands of C.S.D. do you have? Favorite C.S.D. of Pepsi Product SL No Product Percentage 1 Pepsi 12%
2 7up 30% 3 M. Dew 18% 4 Slice 24% 5 Mirinda 16% Favourite C.S.D. of Pepsi Product Percentage 1 Pepsi 2 7up 3 M. Dew 4 Slice 5 MirindaInterpretation:-Among entire brand of Pepsi Cola, 7up is having a highest demand and followed by Slice,Mountain Dew, Mirinda and PepsiANALYSIS OF THE RETAILERS’ QUESTIONNAIRE:-Questionnaire for “Sales Trend of Beverage Industry”:-
Q.1 How much of the business you do, from Pepsi?With the help of this question I tried to find out that how much a businessman do a business fromthe product of Pepsi, and I found that convenience shops (i.e. general stores, beetel shop,stationary shop etc.) are having a great role in sale of Pepsi, in these shops, about 60% ofbusiness comes from the sale of soft drink. This percentage of contribution or business of eachdealer depends upon the type of shop and the location of shop. As we have talked, that in thissurvey we are having mainly three types of shops i.e. convenience, grocery and eatery. In thesecategories, a convenience shops are having a very high percentages of business which they dofrom Pepsi, there is very minimal effect of location on these types of shops. Like wise an eateryshops are having a second position in this question and they do about 25% of business but theirbusiness is effected from the location and similar in the grocery shops, having a least businessi.e. 15% and also affected from the location.Q.2 Which is your favorite C.S.D.?Through this question I tried to ask about the sale of an individual product of Pepsi and Coca-Cola. The figure that I found is as:- among of all C.S.D. product 7UP is favorite C.S.D. among ofall the dealers with 15% of preference, Slice having the percentages of preference is 12%,Mountain Dew and Sprite are having the percentage of preference are 11% these two C.S.D. isfollowed by the another C.S.D. After that Mirinda and Fanta are having the preference of theConsumers respectively 10% and 9%. Thumps up and Maaza are having the percentage ofpreference are respectively 8% and 7% and Pepsi and Limca both having 6% preference and atthe end point Coca Cola having 5% of consumer preference.Q.3 How many of each of the following brands of C.S.D. do you own?This question focused on the store capacity and product availability at each counter, in thisquestion I tried to concentrated on only Pepsi products, (i.e. Pepsi, 7up, Mirinda(o), MountainDew and Slice). I prepared a structure in a percentages form with the help of the response givenby the dealers. On the basis of given response 7up is having 40% of the storage, which isfollowed by a product from an Cola segment, Pepsi with a 30%. After this orange segment, a
Mirinda is having a third position with 15% of storage preference by the dealers, and finallyMountain Dew is having 8% of preference and lastly a Slice with 7% of preference level ofdealers.For coca-cola, a retailer out of every dealer preferred to keep 40% bottles of Sprite, 25% bottlesof Thums up, 15% bottles of Maaza, 11% bottles of Coco Cola, and 9% bottles of Limca andFanta. Thus Sprite is the most preferred flavor along with Thums up while others are not of muchsignificance.Q.4 How satisfied are you, with the VISI Cooler of PEPSI?With the help of this type of question I tried to know the opinion of the dealers about thefacilities provided by the company and in this sequence I took “visi cooler” as a first facilityprovided by the company. I divided the whole opinion of the dealers in mainly five parts, whichstarts with the satisfactory and end with the dissatisfactory of the dealers. In between these twoopinions (i.e. very satisfactory and very dissatisfactory) there are three more opinion, which arequite satisfied, neither satisfied nor dissatisfied and quite dissatisfied.After analyzing this question I found that 8% of dealers are highly satisfied with visi cooler, 20%of dealers are very satisfied with the visi cooler of Pepsi, 12% are quite satisfied, 10% are neithersatisfied nor dissatisfied, 50% of dealers are Not satisfied and with the Visi Cooler of Pepsi.Q.5 How satisfied are you with the SCHEMES of PEPSI?This is another question which tell us about the opinion of the dealers for Schemes, which isprovided by the company to push the product and generate the sale of product in the market. Soafter analyzing this question I found that 62% of dealers are very satisfied with the schemes,27% are quite satisfied, 6% dealers are neither satisfied nor dissatisfied, 5% of dealers are quitedissatisfied and I glad to find out that there is no one dealer which is fully or very dissatisfiedwith the schemes facility of Pepsi.
Q. 6 How satisfied are you with the GLOW SIGN BOARD of PEPSI?This question talk about the glow sign board, which are the boards on the top of a shop with neonlights in the back ground with works as a sign board for the shop. After analyzing this question Ifound that 20% of the dealers are very satisfied with the glow sign board, 12% are quite satisfied,10% are neither satisfied nor dissatisfied, 50% are Not satisfied and finally 8% of dealers arevery dissatisfied with the glow sign board.Q.7 How would you rate COKE compared to PEPSI on SCHEMES?In this I tried to find out the opinion of the dealers about the schemes of Pepsi in compare ofCoke and I found that for 23% of dealers told that Coke has good scheme in this season. 77%dealers told that Pepsi provide good scheme in this summer as for example scratch card system.Q.8 How satisfied are you with the quality of Pepsi?In this question I tried to focus on the quality of the product of Pepsi, and I analyze that dealersare not satisfied with the quality and the taste of the product and there is very less no of bottlewhich are faulted.Q.9 Support material (holders, displays etc.)?With the help of this question I tried to found out that how many a dealers are satisfied with thesupport material, provided by the Pepsi. The opinion of dealers are divided into three main parts,which are, provided no support material, provided low quality of support material and assistanceand provided high quality of support material and assistance to help his business.After analyzing this question I found that there are only two types of dealer, one who getssupport materials and assistance and another who does not get any support materials andassistance. There are only 30% dealers who get support materials and 60% dealers do not get anytype of assistance.
STRENGTHS:- • PEPSI has an excellent brand name, awareness & high quality image. • PEPSI has effective and stronger service than its competitors like COKE who too have a good name in soft drink market. • Quality products at a competitive price. • PEPSI has an effective distribution system i.e. dealers have good contacts with the customer executive. • Continuous & strategic improvements in the promotional strategies. • Strong dealer network • PEPSI has got goodwill in the market with regard to the brand name. • PEPSI has highest Market share of 69% in C.S.D. sector. • Market share of PEPSI is consistently increasing.WEAKNESSES: - • The cola flavors of Pepsi have not so good test as previous (as the customer perceives it). • PEPSI dose not have any provision for expiry and fusty goods. • Restricted range of products. • The frequency of vehicle in peak season is not sufficient.
OPPORTUNITIES:- • Consumers are showing increased interests in PEPSI products. • New develop schemes like “Scratch card system ” provides it an edge over its competitors • Top position in C.S.D. products gives it an advantage. • Pepsi can explore its distribution network in interior area also.THREATS:- • Competitor’s products already available in the market with similar schemes. • Grubby packaging and storage in compare of Coke. • Tough competition from Coke. • strategic pricing by competitors may affect the company’s wafer thin margins FINDINGS
1. As per I have visited to dealers outlets I found that in outlets visibility of Pepsiis avarage2. Preference level is more of Pepsi products as comparison to coke. In coke the demandThumps up is more as comparison to Pepsi cola flavor.3. satisfaction level is also good.4. The sales level of Pepsi is less than coke. According to data I have been collected themarket share of Pepsi is 49%5. Dealers are happy with Pepsi products. They got the products by the company at thetime due to good distribution channel.6. The factors which influence purchase of Pepsi or coke is promotional activities likescheme of free bottles with pet, gifts given by the company etc.7. The dealers want more promotional scheme, gifts and quality service.
RECOMMENDATIONFOR DISTRIBUTION CHANNEL:- • Company must increase the frequency of vehicle for the distribution channel. • Company must explore the interior areas and try to make new outlets over there. • Company must keep regular monitoring on the distributors and supply, retains the availability and continuity. • Company must provide a gift or bonus to the salesman and distributors. • Company must distribute a gift and schemes through a proper channel.FOR SALES TREND:- • Company must provide better services and try to attend the suggestion and complain by the retailers. • Company must provide general information about product and price in the outskirts areas. • Company is requiring, providing support materials and accessories to the retailers in both urban and outskirt areas. • Company must provide a service for the expiry goods. • Company must improve its packaging and storing process. • Company must provide or make avail products according to the demand. • Company is requiring, keeping eyes on retailers and going through to their problems. • Company must encourage the high selling counters by providing incentives and other extra benefits.
CONCLUSION After analyzing the fact we came to the conclusion that PEPSI is growing day by day.This conclusion is based on overall information collected from various distributors, retailers,markets and consumers. They are having an edge over other soft drink producer in the market.They are doing very good in the current scenario, but they need some object oriented and bitdynamism in the strategy in the outskirt. The company just needs to reform its rules, create more global awareness, change itspolicies in favour of more opportunities & encourage its major players to invest in thecompanies. However, the company, if concentrates on the following factors will be able to face toughchallenges: • Technology • Quality • Brand competition • Price competition • Good balance between production and sales • Different preferences for products by different age groups • R & D capacity • Distribution Network • Pre-Sales services • After-sales servicesThus the company has an upcoming bright future in the future years. The training at PEPSItaught me that classroom study is not an end but is a mean to achieve your goals. The stint atPEPSI will go a long way in enhancing my life as a student. As life is full of learning and onebeing student throughout it.
BIBLIOGRAPHYSites Visited • www.google.com • www.pepsico.com • www.domain-b.com • www.yhaoo.comBooks Referred • Marketing Management by Kotler, Killer, Koushik and Jha • Marketing Management by Piter Dacken • Marketing Strategy Magazine • Marketing management Magazine • C. R. Khothari QUESTIONNAIRE
Dear sir/ madam, I BALGOPAL SAHU, a student of Frist year M.B.A. of “Institute ofbusiness and computer studies”, a Research project on the Topic “ Over all Market activityof Pepsi ”. I would be grateful to you if you could spare sometime from your busy scheduleand fill up the questionnaire. I assure you that whatever information you provide shall bekept confidential and will be used for academic purpose.Name of outlet _______________________________________________Address __________________________________________________Q1. Monthly Sales (in Rs.) (a) Less than 5000 (b) Between 5000 to 10,000 (c) 10,000 to 15,000 (c) Above 15000Q2. Number of *c/s – carets sold per month of soft drinks. (a) 0 to 50 carets (b) 50 to 100 carets (c) 100 to 150 carets (d) 150 to 200 caretsQ3. Which Type of outlets? (a) Convenience (b) Grocery (c) EateryQ4. Do you know about all flavors pack (size) and respective wholesale price of Pepsi softdrinks (a) Yes (b) NoQ5. Which flavors of Pepsi is more demanded by consumer? (a) Pepsi Cola (b) Mirinda (O) (c) Mirinda (L) (d) 7Up (e) Slice (f) Mountain Dew
Q6. Which company soft drink is most demandable? (a) Pepsi (b) Coca –Cola (c) Others Q7. What is the position delivery of Pepsi products? (a) Very goo (b) Good (c) Bad (d) WorseQ8.What is the frequency of buy Pepsi product? (a) Daily (b) Alternative day (c) Weekly (d) FortnightlyQ9. Which factors effects the sales volume? (a) Advisements (b) Scheme (c) Presence (d) Taste (e) Price (f) Others Q10. Which type of VISI Cooler / Cooler you have? (a) Pepsi (b) Coca Cola (c) Both (d) Own (e) Not having any Q11. What is the position of maintenance work of refrigerator done by Pepsi Company? (a) Highly satisfactory (b) Satisfactory (c) Less satisfactory (d) Not satisfactory Q12. Which Company provide you Singes ? (a) Pepsi (b) Coca Cola (c) Both (d) Not satisfied